In the last 24 hours, with the fall in the record low price of bitcoin and digital currencies, over $ 1 billion in trading positions on digital currency exchanges have been liquidated. This is the biggest wave of liquidation of trade positions since the beginning of 2022.
In the last 24 hours, more than $ 1 billion in futures trading has been eliminated in the last 24 hours as many key positions in the charts have been broken and fears among traders have increased, according to Kevin Desk.
Liquidation occurs when an exchanger completely closes the leverage trader’s trading position to prevent the original amount due to the trader from being burned. In fact, trading platforms do not allow the balance of the trader’s account to reach less than his debt. This happens mainly in the futures markets.
Bitcoin has lost more than 5% of its value in the last 24 hours, and Atrium, Binance Coin and Ripple have had similar conditions. Luna is the most unfortunate of all digital currencies, experiencing a 50% decline, largely due to the unusual decline in the value of Terra’s stable US dollar, UST. Meanwhile, Dodge Quinn performed 6% better than many altcoins.
Bitcoin fell below $ 30,000 in the early hours of this morning. The decline, which pushed the price of bitcoin to its lowest level of 290 days, is partly due to the 4.29% decline in the Nasdaq stock index. Asian stock markets also began trading today with a 1% decline in key indices.
Today’s historic collapse has led to the biggest wave of liquidation of digital currency trading positions since early 2022. According to the latest statistics, Bitcoin traders have lost $ 346 million, Atrium traders $ 321 million and Luna market participants $ 87 million of their capital due to the liquidation of their trading positions in exchange offices, which is considered an unusual figure.
More than $ 793 million of liquidated trade items belong to long traders (buyers), which is equivalent to 73% of the total amount lost. Of the $ 1 billion in trading, $ 257 million was liquidated in OKX, with Bainance and FTX representing $ 181 million and $ 102 million, respectively.
The number of open interest rate positions in the derivatives markets decreased by 5.6% during this period, indicating that some traders expect prices to continue to decline further and therefore to close their trading positions. Meanwhile, the total market value of digital currencies has fallen by about 8% in the last 24 hours.
At the time of writing, it seems that prices are gradually recovering. Bitcoin is currently trading above $ 31,900, with Atrium approaching $ 2,400. The continuation of the process of price recovery also depends on the situation on the stock market in the coming days.
The publication The liquid trading position is becoming a liquid trading position, as the digital currency falls by $ 1 billion appeared for the first time in the digital currency.